12 On Your Side Update: Chapter 7 filing - NBC12 - WWBT - Richmond, VA News On Your Side

12 ON YOUR SIDE

12 On Your Side Update: Chapter 7 filing

By Diane Walker - bio | email
Posted by Terry Alexander - email

RICHMOND, VA (WWBT) - We know more, tonight, about the Chapter 7 bankruptcy filing of Richard Reynolds. The former owner of the troubled awning company filed for personal bankruptcy soon after his corporation went bankrupt.

Richard Reynolds is claiming he owns nothing that's worth going after. The heir to the Reynolds fortune filed his statement of financial affairs. He says he has only $50 in his bank account.

Richard Reynolds is unemployed, according to bankruptcy papers he filed. The father of three listed his wife's one thousand dollar a month salary as the only income source.

In the past, Reynolds blamed his business troubles on the bad economy. Many of the same people who filed claims against the bankrupt Thermo-Press Norvell Awning Corporation have lined up as creditors, in the personal bankruptcy case.

Former business partner, John Watkins, wants $261,000 claiming Reynolds defaulted on a promissory note. Even the Chamber of Commerce hopes to collect $500.         

Property claimed as exempt; include Reynolds million dollar Windsor Farms Home, household goods and furnishings, clothing, and his 2 dogs, listed at a value of $20. Overall, the goal of Chapter 7 is to liquidate non-exempt assets and pay back your creditors. The court determines who gets what.

"He's supposed to disclose all his assets and all his liabilities. It's also true if he were to get an inheritance within 6 months. That's part of the bankruptcy estate as well," said Attorney John Moore, Coates and Davenport. "If all goes through then he walks away with what's called a fresh start."

Documents show, Reynolds sold his share of a hunt club in Westmoreland County, for $40,000 and used the proceeds to pay a creditor. But, there are many more, who say he took their deposits, without finishing jobs. He's listing a debt load of more than 1-point 6 million dollars.  He owes $309,000 in taxes and other government debts.

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